NOVEMBER 2025 – TANZANIA
NEW MINIMUM WAGE FOR PRIVATE SECTOR
It is important that employers note the following:
Tanzania issues new private sector minimum wage order
The Government of the United Republic of Tanzania has issued the Labour Institutions (Minimum Wage for Private Sector) Order, 2025 through Government Notice No. 605A, which comes into effect on 1 January 2026. This legislative update introduces revised statutory minimum wages across 16 private sector categories, including agriculture, healthcare, construction, domestic work, private security, education, hospitality and financial services. The sector-specific minimum wages are detailed in the Second Schedule of the Order.
The Order introduces detailed wage structures specifying hourly, daily, weekly, fortnightly and monthly rates for each sub-sector. Employers are permitted to pay above the minimum rates, either through collective bargaining agreements (CBAs) or employment contracts. A non-regression section ensures that employees who currently earn more than the new minimum rates retain their higher pay, provided they remain with the same employer.
Additionally, Sections 5(2), 5(3) and 5(4) in the 2025 Wage Order introduce new statutory benefits that were previously not mandated under the 2022 Wage Order or the Employment and Labour Relations Act. Applicable across all private sector categories, the benefits are:
- Leave travel allowance: Employees who remain continuously employed with the same employer for two years are now entitled to a travel allowance, payable once every two years in addition to annual leave.
- Subsistence allowance: Employees sent to work outside their usual workstation must be paid a subsistence allowance, as agreed upon with their employer.
- Truck driver allowances: Drivers are now entitled to additional compensation covering mileage, extended stays away from home and the loading/unloading of cargo, based on terms negotiated between drivers and their employers.
These allowances take effect alongside the new minimum wages from 1 January 2026, but remain flexible in quantum as the Order does not prescribe fixed rates, requiring employer-employee agreement. Employers should begin defining clear internal policies or incorporate these terms into collective bargaining agreements to ensure compliance.
To view the Order, follow the link.
